Castillo Copper Limited announced that following a review of prospects within the NWQ Copper Project, has authorised the geology team to visit several prospects - including Big One, Arya and Valparaisa - during 1H 2023 to identify new targets for test-drilling. NWQ Copper Project - Site Visit: A summary of salient points from the review for the three prospects highlighted follows: Big One: Whilst some areas around Big One were drill-tested in the 2020-21 drilling campaigns, much of the area remains under-explored which highlights the exploration potential. Utilising information from Castillo's drilling campaigns, complemented with historical data, Castillo's geological consultant compiled an extensive database, built a block model, and produced a maiden 2012 JORC Inferred MRE at 2.1Mt @ 1.1% Cu for 21,886kt copper metal.

Building on this work, the geology team believe further drilling is warranted along the known orebody to the east, north and downdip as it is not fully defined. Specifically, the geology team believe a well-designed drilling campaign - focussing on diamond coring - has the potential to materially increase the grade and confidence in the current MRE, as the orebody is open to the east and downdip. In addition, an Exploration Target* (to the standard of Clause 17 of the 2012 JORC Code) has been estimated utilising the following information: the MRE plus some areas proximal to and downdip to the main resource shell; and available geophysics and surface sampling data.

It should be explained that this is an enlarged range of tonnage compared to the MRE due a new wireframe model extended along the entire line of lode. Valparaisa Prospect: TheValparaisa Prospect comprises copper mineralisation in two horizons - termed the "upper and lower copper beds" - within the Middle Gunpowder Creek Formation over a 6km strike length. Compared with the 'upper bed' the 'lower bed' has the stronger outcrop and more copper staining.

Previous explorers, including BHP, undertook rock-chip sampling which returned high-grade assay results up to 2,530ppm Cu, demonstrating prospectivity at surface for copper mineralisation. Interestingly, the surface anomalism aligns with the interaction of two intersecting faults - Mt Gordon (SW-NE - links to Mt Mammoth Deposit) and Valparaisa (SSE-NNW). Reconciling and interpreting the foregoing facts has postulated that there is a structurally controlled copper system at the Valparaisa Prospect.

In terms of identifying potential targets for closer scrutiny, a key positive was identifying the Whitworth Quartzite rock formation within the Valparaisa fault. This is significant as it hosts copper sulphide mineralisation within the Mt Gordon fault at the Mt Mammoth Deposit. Reconciling this against overlaid magnetic imagery, enables several target areas for structurally controlled copper and supergene ore mineralisation to be generated.

Arya Prospect: A limited drilling campaign in late 2021, designed to test several large airborne electro-magnetic and ground resistivity anomalies, confirmed a low-grade graphite system that won't be further explored. However, a sizeable magnetic anomaly - south of the known electro-magnetic anomalies - is interpreted to be associated with known surface copper and to a lesser degree silver mineralisation. A key focus of the site visit is to determine if this should be drill-tested as it may be a primary source of base metal mineralisation at the Arya Prospect.

In terms of regional geology, the Arya Prospect is located in the Western Mt Isa Succession, within a structurally deformed and copper anomalous district that hosts the Capricorn Copper Mine, Mt Oxide Mine and the Ladie Annie Mine. These are hosted within units of the upper Myally sub-group to lower McNamara Group, while the Arya Prospect is hosted within the Surprise Creek formation. In terms of local geology, the Arya Prospect is located within the Surprise Creek Formation unit (Prd), with several results from rock-chip sampling indicative of a structural system for anomalous copper values.

Moreover, the Arya Prospect is proximal to an east to north-east trending fault that offsets the Surprise Creek unit (Prd) from lower units near the base of the Surprise Creek Formation, and Myally Sub-Group units, including quartzites, and sandstones. Interpreting these findings, suggests probable mineralisation styles include: Supergenemineralisation forming at the surface along the fault, fault breccia, and the Surprise Creek Formation (PLrd) rock unit. Epigenetic replacement mineralisation for Cu (with minor components of other base metals and gold) from replacement carbonate mineralisation, particularly the Surprise Creek Formation.

Skarn mineralisation for Cu-Au and/or Zn-Pb-Cu from replacement carbonate mineralisation, particularly the Surprised Creek Formation. Sulphide mineralisation within breccia zones, along stress dilation fractures, emplaced within pore spaces, voids, or in other rock fractures; and/or dykes. Main ore minerals observed comprise: Malachite and chrysocolla along foliation, in brecciated/strongly haematitic sedimentary rocks.

Quartzite/rhyolite with chrysocolla on joint surfaces and fractures, circa 3-5% Cu. Malachite and azurite on joint planes in porous sandstone.